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The New York Stock Exchange, when the funds in your 401k buy or sell stocks, chances are they trade them here or on another big exchange like the Nasdaq. Everytime mutual funds do that, brokers charge a fee; it’s a legitimate cost, but the funds don’t pay it, you do! And here’s why that matters: Critics say brokerage fees can double the cost of your funds without you knowing because funds deduct this charge from your returns without sending your bill. To learn more about hidden brokerage costs, we headed to Bluegrass country (Lexington, KY) to talk some more with Dr. Greg Kasten, President of Unified Trust Company whose specialty these days is diagnosing ailing retirement plans. He has assembled a special database that enables him to calculate the impact of hidden brokerage fees in mutual funds.

Video Review

Dr. Greg Kasten (Unified Trust Company): The hidden trading costs or what we call these transaction costs stem from not the plan participants’ doing any trading but the actual managers of the mutual funds buying stocks or bonds.… Read More »

More than 78 million baby boomers start surging their way into retirement beginning 2008; the first generation of Americans to retire with 401(k)s. These are employer sponsored plans that allow workers to invest money without Uncle Sam taxing it until it’s withdrawn. But something has been draining cash out from these plans. Since the creation of the 401k plan in the early 80s, all that extra money saved should have been compounding, racking up these retirement plans and making Americans rich. But instead, the average 401(k) balance for boomers nearing retirement is only $60,000. That’s not much more than the median household income in the US for 1 year. There are a lot of reasons why 401(k)s are coming up short, like the stock market’s steep decline from its all time high in October 2007. A less obvious reason, infact a hidden reason are all of the fees that can take a big chunk out of your investment returns.… Read More »

If you want to retire in style, you are probably not banking on relying on Social Security. Kwei Battles, a 401k Investor featured in the video invests in a 401k, Roth IRA and some personal investments. This video gives basics tips on how to plan out your 401k retirement plan & strategies you can use to avoid common pitfalls and have a successful retirement. The most common tips are, beware of company stock and do not put all your eggs in one basket, keep your investments simple and to a maximum of 5, and review your investment portfolio every now and then (this could be every quarter, annually or even every month – if you have the time).

Video Review

Commentator: And you’ve got to do more than just put money aside. You’ve got to figure out, where to put it!

Kwei Battles: American Bank, Washington Mutual are some of my banks.… Read More »